In the last quarter century, the U.S. economy has been transformed by a large inflow of direct investment from abroad. Foreign companies, mainly from Europe and Japan, have built factories and acquired U.S. firms at an ever-increasing rate. Jonathan Crystal finds inconsistencies in how American businesses have responded to this globalization of production. Many American firms, under siege from overseas competitors, have already expended considerable energy in obtaining trade protection, but they are competing not only with foreign imports but also with locally established foreign-owned firms. Crystal also suggests what policies American businesses and lawmakers could adopt to contend with this pressing dilemma.